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Team Production, Endogenous Learning about Abilities and Career Concerns

Author

Listed:
  • Evangelia Chalioti

    (Cowles Foundation, Yale University)

Abstract

This paper studies career concerns in teams where the support a worker receives depends on fellow team members� effort and ability. In this setting, by exerting effort and providing support, a worker can influence her own and her teammates� performances in order to bias the learning process in her favor. To manipulate the market�s assessments, we argue that in equilibrium, a worker has incentives to help or even sabotage her colleagues in order to signal that she is of higher ability. In a multiperiod stationary framework, we show that the stationary level of work effort is above and help effort is below their efficient levels.

Suggested Citation

  • Evangelia Chalioti, 2015. "Team Production, Endogenous Learning about Abilities and Career Concerns," Cowles Foundation Discussion Papers 2020, Cowles Foundation for Research in Economics, Yale University.
  • Handle: RePEc:cwl:cwldpp:2020
    as

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    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d20/d2020.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Career concerns; Team incentives; Incentives to help; Incentives to sabotage;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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